The European Union is set to implement its first countermeasures against U.S. tariffs starting Tuesday next week. This decision follows an agreement reached among EU member states, aligning with retaliatory actions taken by China and Canada, thereby heightening a global trade conflict. The approval coincided with the activation of President Trump’s “reciprocal” tariffs, imposing significant duties including a staggering 104% on imports from China. This escalation has contributed to increased volatility in financial markets.
Under Trump’s policy aimed at addressing what he perceives as high barriers to American imports, the 27-nation EU faces various tariffs—25% on steel and aluminum, additional tariffs on cars, and a broader set of tariffs amounting to 20% on almost all other goods. In a direct response to the U.S. metals tariffs, the EU plans to impose 25% duties on a range of U.S. imports starting next week. The bloc is still reviewing how it will tackle the additional tariffs on cars and other goods. These U.S. imports targeted by the EU include agricultural products like maize, wheat, and poultry, as well as motorbikes and clothing.
The total value of these imports reached approximately 21 billion euros last year, which is less than the 26 billion euros in EU metals exports affected by U.S. tariffs. The implementation of the EU’s measures will occur in stages throughout the year, with final tariffs on almonds and soybeans set for December 1. According to the European Commission, these countermeasures can be suspended should the U.S. agree to a fair and balanced negotiation. A committee comprised of trade experts from the EU’s member states has already voted in favor of the Commission’s proposal, with only Hungary opposing it.
This vote reinforced a decision that had been anticipated based on earlier consultations with EU members, during which certain products, including U.S. dairy and alcoholic beverages, were removed from the proposed list.